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Proventure Income Fund announces results for third quarter of 2011

CALGARY, Nov. 8, 2011 /CNW/ - Proventure Income Fund (the "Fund") is
pleased to report its financial results for the nine month period ended
September 30, 2011.

Overall Performance

We reported a loss for the period of $255 thousand or $0.03 per basic
unit when compared to a loss of $1,418 thousand or $0.19 per basic unit
for 2010. In addition, our EBITDA (see "Non-IFRS Financial Measures")
increased to $649 thousand from a loss of $867 thousand in for the
third quarter of 2011 when compared to the same period of 2010.

The difference in the net loss reported in the third quarter of 2011
when compared to the third quarter of 2010 is $1.16 million. The
primarily reasons for the change in the net loss between periods is a
combination of a write-down in real estate held for development and
sale of $1.78 million recorded in 2010, a decrease in finance income
related to the net change in fair value of a fund unit liability of
$229 thousand recorded in 2010, and income taxes of $351 thousand
related to SIFT tax recorded in 2011.

Proposed Transactions

The Fund has entered into an agreement with Cervus Equipment Corporation
("Cervus"), a related party, to complete a series of transactions,
including the sale to Cervus of certain real estate assets that
Proventure currently leases to Cervus in the amount of approximately
$25.9 million. The sale is conditional upon receipt of regulatory
approval and the approval of disinterested unitholders of Proventure.

In addition, Cervus has agreed to loan ProDev Trust ("ProDev")
approximately $11.2 million, the proceeds of which will be applied to
pay off a Promissory Note between ProDev and Proventure. The loan is
expected to be repaid in December 2012. As a result of the repayment
of this loan, Proventure will qualify as a REIT for the period
commencing January 1, 2012.

Selected Quarterly Information

Three Months Ended

Nine Months Ended

In $thousands, except per unitamounts

September 30,2011

September 30,2010

% Change

September 30,2011

September 30,2010

% Change

Revenue and other income

856

839

2.0

2,530

2,504

1.0

Profit (loss) for the period

(255)

(1,418)

82.0

751

3,427

(78.1)

Per unit - Basic

(0.03)

(0.19)

84.2

0.10

0.45

(77.8)

Per unit - Diluted

(0.03)

(0.15)

80.0

0.08

0.35

(77.1)

Cash provided by operating activities

(187)

(73)

(156.2)

812

1,144

(24.2)

Per unit - Basic

(0.02)

(0.01)

(100.0)

0.10

0.15

(13.3)

EBITDA

649

(867)

-

2,774

5,053

(45.1)

EBITDA margin1

75.8%

(103.3)%

-

109.6%

201.8%

(45.7)

Per Unit - Basic

0.08

(0.11)

-

0.28

0.78

(64.1)

Weighted average units outstanding

Basic

7,817

7,639

2.3

7,749

7,610

1.8

Diluted

9,918

9,740

1.8

9,850

9,712

1.4

Actual units outstanding

7,817

7,638

2.3

Closing market price

1.90

1.72

10.5

Total assets

54,142

57,003

(5.0)

Total long-term liabilities

25,460

32,929

(22.7)

Unitholders' equity

24,460

19,943

27.6

Net book value per unit - basic

3.16

2.62

20.6

Note: (1) These financial measures are identified and defined under the
section "Non-IFRS Financial Measures" in the MD&A.

The Non-IFRS measures identified in this Press Release do not have any
standardized meaning prescribed by International Financial Reporting
Standards ("IFRS"), and are therefore, unlikely to be comparable to
similar measures presented by other issuers. These non-IFRS measures
are more fully defined and discussed, together with reconciliation to
the most directly related IFRS measure in the MD&A of the Fund on the
results of operations for the nine month period ended September 30,
2011.

Copies of Proventure Income Fund's unaudited financial statements and
related MD&A are available on the SEDAR website at www.sedar.com.

Proventure Income Fund is an open-ended mutual fund trust established on
December 31, 2005 under laws of the Province of Alberta. The Fund is
in the commercial property development business and leases real estate
to Cervus LP. The units of Proventure Income Fund are listed on the
TSX Venture Exchange and trade under the symbol "PVT.UN".

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.